Bank of England's Bailey Warns of Coming Regulatory 'Wrestle' With US Over Stablecoin Standards

According to Reuters, Bank of England Governor Andrew Bailey warned Friday that international regulators face a “coming wrestle” with the U.S. government over stablecoin standards. Bailey, who also chairs the Financial Stability Board, flagged that some U.S. stablecoins cannot be readily converted to dollars without routing through crypto exchanges, potentially limiting convertibility during a crisis. If dollar-pegged stablecoins become widely used for cross-border payments, Bailey argued, a crisis could trigger users to flee to jurisdictions with stricter redemption rules. “We know what would happen if there was a run on a stablecoin — they’d all turn up here,” Bailey said, highlighting the risk to UK financial stability.